Jul 26, 2018
Amazon profit rises but sales growth could slow
Amazon hit $52.89bn in sales in the most recent quarter, rising 39% from the same period a year ago. Despite the caution, the firm's shares jumped more than 2% in after-hours trade as investors responded to strong profit growth. Amazon said profits rose to $2.53bn in the three months to the end of June - more than 12 times last year's profit. The gains were driven in part by strong sales at the firm's lucrative cloud services division, Amazon Web Services, which were up nearly 50% year-on-year to $6.1bn. Retail sales in North America were also healthy, rising about 44% to almost $32.2bn. Amazon told investors that it expects third quarter sales in the range of $54bn- $57.5bn, growth of 23% to 31%. That would mark a return to rates the firm saw last year, before Amazon completed its acquisition of upmarket grocery chain Whole Foods. Amazon is expected to account for roughly half of online sales in the US this year, according to research firm eMarketer.
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